Interstate Hotels to Buy 3 Hotels From Blackstone

From the Associated Press
Interstate Hotels & Resorts said today it formed a joint venture with Investcorp International's Real Estate Group to buy three hotels from affiliates of the Blackstone Group LP for $118 million.

Interstate will invest about $4.7 million in exchange for 15 percent equity interest in the 321-room Hilton Seelbach Louisville in Kentucky and the 226-room Crowne Plaza Madison in Wisconsin. The two hotels will continue to be managed by Interstate under new contracts.

Interstate will also acquire all of the 288-room Sheraton Columbia in Maryland for $46.5 million. The company said it plans to invest $12 million for renovations, which are expected to be completed by the end of next year.

Interstate, an independent hotel management company, said its portion of the transaction will be funded with available cash and capacity under its senior revolving credit facility.

The acquisition is expected to close in the fourth quarter.

By Mike Shepard  |  September 19, 2007; 2:30 PM ET
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